Featured Product

    IOSCO Updates Peer Reviews on Regulation of Securitizations and MMFs

    October 02, 2019

    IOSCO published two updated reports on peer reviews of the implementation of incentive alignment recommendations for securitization and on the regulation of money market funds or MMFs. The reports describe progress by IOSCO members in FSB jurisdictions in adopting legislation, regulation, and other policies covering securitization and money market funds, both of which are the G20 priority reform areas. The securitization report covers two topics—incentive alignment arrangements and disclosure requirements; the report finds that, overall, progress remains mixed across participating jurisdictions in implementing the recommendations for incentive alignment for securitization.

    The securitization report sets out the findings of the 2018 Update Review, where IOSCO members from 24 participating FSB member jurisdictions were asked to provide information on regulatory developments in these areas as of August 30, 2018. Out of the 24 participating jurisdictions, 12 jurisdictions had final adoption measures in force for implementation of incentive alignment regimes (unchanged since 2017) while 10 jurisdictions had final adoption measures in force for disclosure requirements for issuers (unchanged since 2017). However, 5 EU jurisdictions had final adoption measures published but not taken or in force, showing an improvement from 2017. It was found that changes in implementation status were warranted for EU member jurisdictions (France, Italy, the Netherlands, Spain, and the United Kingdom) in both areas. The review also found that reforms were underway in Argentina, Australia, Brazil, China, Indonesia, Russia, and Saudi Arabia; however, these did not warrant a change in implementation status. 

    The money market funds report sets out the findings of the 2018/2019 Update Review, where IOSCO members from 24 participating FSB member jurisdictions were asked to provide information on the relevant regulatory reforms as of March 31, 2019. The report covers three topics: valuation, liquidity management, and money market funds that offer a stable Net Asset Value. The review finds that most jurisdictions have implemented the fair value approach for the valuation of money market fund portfolios, but progress in liquidity management is less advanced and less even. On money market funds that offer a stable Net Asset Value, further work was needed. In 2019, the implementation status changed for two jurisdictions: Hong Kong and Republic of Korea. In Hong Kong, the final implementation measures came into force in the two remaining reform areas: liquidity management and money market funds that offer a stable Net Asset Value. For the Republic of Korea, draft implementation measures were published in the two remaining reform areas: valuation and liquidity management. Overall, implementation of the reported reform areas is most advanced in 12 participating jurisdictions (approximately 78% of the global market), including three of the largest markets (U.S., China, and Japan).

    These reports summarize the ongoing efforts of IOSCO to monitor implementation of reforms for money market funds and securitization, since IOSCO published the first two peer reviews in September 2015. The reports contain updated tables summarizing the implementation status of each participating jurisdiction in areas covered by the Update Reviews. The reports also take note of the new regulations yet to come into force or to be applied in various jurisdictions. The reports set out the background, methodology, and findings that were reported to the G20 leaders in 2018 and 2019 and were included in the Annual Reports on implementation and effects of the G20 financial regulatory reforms.

     

    Related Links

    Keywords: International, Banking, Securities, Insurance, Peer Review, Securitization, G20, Money Market Funds, Regulatory Reform, FSB, IOSCO

    Related Articles
    News

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.

    June 21, 2022 WebPage Regulatory News
    News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News
    News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News
    News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.

    June 16, 2022 WebPage Regulatory News
    News

    UK Authorities Issue Regulatory and Reporting Updates for Banks

    The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.

    June 15, 2022 WebPage Regulatory News
    News

    BaFin Consults on Resolvability Requirements for Resolution Planning

    The Federal Financial Supervisory Authority of Germany (BaFin) proposed to amend the “Capital Investment Conduct And Organization Ordinance” and issued a draft circular on the minimum resolvability requirements for resolution planning.

    June 10, 2022 WebPage Regulatory News
    News

    EBA Consults on Certain Standards and Guidelines Under CRR and BRRD

    The European Banking Authority (EBA) proposed guidelines, for the resolution authorities, on the publication of the write-down and conversion and bail-in exchange mechanic, with the comment period ending on September 07, 2022.

    June 08, 2022 WebPage Regulatory News
    News

    OJK Publishes Regulatory Updates for Financial Sector Entities

    The Financial Services Authority of Indonesia (OJK) is strengthening cooperation with the Australian Prudential Regulation Authority (APRA) and the Japanese Financial Services Agency (JFSA)

    June 03, 2022 WebPage Regulatory News
    News

    EU Publishes Rules on DLT and Data Governance

    The European Parliament and the Council published Regulation 2022/868 on European data governance (Data Governance Act).

    June 03, 2022 WebPage Regulatory News
    News

    EBA Publishes Phase 2 of Reporting Framework 3.2

    The European Banking Authority (EBA) published phase 2 of its reporting framework 3.2. The technical package supports the implementation of the updated reporting framework by providing standard specifications

    June 03, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8267